Introduction
Many solar households focus on the headline feed-in tariff (FiT) rate, but overlook the fine print. Retailers often apply caps and thresholds that limit how much of your solar export actually earns the advertised rate.
This guide explains how FiT caps and thresholds work, with clear examples, so you can avoid bill surprises.
For background, see What is FiT? or compare offers at Retailer Rates.
Key Definitions
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FiT cap: A maximum number of kWh per day, month, or year that qualifies for the advertised rate.
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FiT threshold: A usage or export limit after which a lower rate applies.
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Tiered FiT: A structure where exports are paid at different rates depending on thresholds.
Worked Example 1 — Daily Cap
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Export: 20 kWh/day
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FiT rate: 10c/kWh, capped at 15 kWh/day
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Credit: (15 × $0.10) + (5 × $0.00) = $1.50/day
Even though you exported 20 kWh, only 15 kWh earned FiT credits.
Check your own exports with the FiT Savings Calculator.
Worked Example 2 — Monthly Threshold
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Export: 600 kWh/month
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FiT: First 500 kWh at 12c, remaining at 5c
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Credit: (500 × 0.12) + (100 × 0.05) = $65/month
Your effective rate drops after crossing the threshold.
Compare rules in your state using Compare FiT by State.
Worked Example 3 — Tiered Export Rate
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Export: 1,200 kWh/year
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FiT: First 1,000 kWh @ 8c, balance @ 4c
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Credit: (1,000 × 0.08) + (200 × 0.04) = $88/year
Averages can hide the lower long-term value of tiered rates.
Use the Rate Change Tracker to monitor retailer policy updates.
Why Caps and Thresholds Matter
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They reduce actual credits compared to advertised FiT rates.
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High-export households are most affected.
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Seasonal exports (e.g. summer surpluses) can quickly trigger thresholds.
Model the long-term impact with the Solar ROI Fit Calculator or by entering your region in the Postcode Estimator.
FAQs
Q1. Do all retailers use caps or thresholds?
No, but many do. Always check the fine print before signing up.
Q2. How do I know if I’ve hit the cap?
Your bill may show reduced FiT credits after a certain usage point.
Q3. Can caps change during a contract?
Yes, retailers can update terms. That’s why the Rate Change Tracker is useful.
Q4. Are caps more common in some states?
Yes, some regions have stricter limits. See Compare FiT by State.
Conclusion
FiT caps and thresholds can significantly reduce your solar export income. Don’t just focus on the headline rate—always check the terms. Use calculators and comparison tools to see how caps may affect your savings and choose the plan that works best for your household.